Calculating in Business

Question 1

What is a budget?

Answer 1

The planned income and expenditure of a household.

Question 2

What is a cashbook used for?

Answer 2

A cashbook is used to record all money actually received and spent.

Question 3

What is an Asset?

Answer 3

Anything owned by a company or individual.

Question 4

Give two other names for Debit. 2.=(+-). What are numbers on the Debit side?

Answer 4

Left
Positive (+)
Money we receive, money IN

Question 5

Give two other names for Credit. 2. (+-). What are numbers on the Credit side?

Answer 5

Right
Negative (-)
Money we spend, money OUT

Question 6

What is meant by ‘balancing an account’?

Answer 6

Balancing an account means we are calculating the difference between money received and money spent.

Question 7

What is balance c/d?

Answer 7

Our closing balance on the account is called balance c/d. (Carried down)

Question 8

What is balance b/d?

Answer 8

This balance is brought down as the opening balance for the next month as balance b/d (brought down).

Question 9

What is the difference between a cashbook and an analysed cashbook?

Answer 9

All items of income and expenditure are categorised under suitable headings (E.g. travel) instead of just a cash column.